Post by bobfl on Apr 11, 2023 20:44:39 GMT
bobfl ,...I see where PGX (from Invesco) is mostly LARGE BANKS, and other decent companies, for the most part. Seems large banks should be minimal in default risk of preferreds, right?
Would you buy PGX now, or wait? Are we not now getting bank preferreds tossed into the "sell now" mix by the crowds. Good opportunity to accumulate now?
TIA
R48
Will buy when excess dividends add up.
Hopefully, will continue to buy "too big to fail". Qualified for tax advantage and ISSUED at as low of a rate as possible, so they hopefully never get called but paying good rates now with cap gains potential. Not your problem with an ETF, but you have failed or hurt banks in the ETFs to watch for, like First Republic.
What I have seen is a lot of movement based on one number: How much I am up for the year, not counting dividends. Man, has it bounced around and surely it is not over yet.
Example, Feb 03, up 15.11%; March 02 (fear happened), dropped to up 6.09%. Everything was moving together; March 16, only up 5.80% (around the date of your post). It moved slowly up over time to up 12.26% today, April 11. Again not including dividends. So this proves one thing. Anything can hit it (until things settle down). What could hit it? EARNINGS ANNOUNCEMENTS; One more bank falls; the Fed goes higher than expected. Inflation number too high. A recession. I am not sure of anything except what the annual dividends should be. The portfolio value can jump around all it wants. I do watch carefully and reduced a broker by 2/3s recently; moved to a "too big to fall", but now the broker is moving back up again. So is the banking fear over? I would say it is reduced for the top four. Now we will move to the next crisis.